The Cabinet of Merton Council met on Monday 16 February 2026, making significant decisions on housing policy, climate action, and the council's budget. Key outcomes included the introduction of borough-wide Article 4 Directions to control the conversion of properties, the approval of Merton's Climate Delivery Plan for its sixth year, and the agreement to freeze general council tax while increasing the adult social care precept.

Article 4 Directions to Control Property Conversions

The Cabinet agreed to implement borough-wide Article 4 Directions, a significant policy change aimed at raising standards in the private rented sector. This decision withdraws permitted development rights for certain property conversions across all wards, with the exception of areas already covered by a 2022 direction. The aim is to prevent the proliferation of Houses in Multiple Occupation (HMOs) and the conversion of commercial spaces into residential units in town centres and industrial areas without planning permission.

The decision was made to:

• Reaffirm Merton's commitment to improving the private rented sector.
• Introduce an immediate Article 4 Direction for HMOs across all wards, except those already covered by the 2022 direction.
• Allocate resources and establish a timeline for extending selective and additional landlord licensing schemes.
• Prepare and implement three non-immediate Article 4 Directions to restrict permitted development rights for:
  • Conversions in town centres and neighbourhood parades, including ground-floor commercial spaces to residential (Class MA) and offices above ground floor to residential in Wimbledon town centre.
  • Conversions of commercial, business, and service uses to residential in designated industrial estates.
  • Conversions of office, research and development, and light industrial uses to residential on scattered employment sites.

Authority was delegated to the Executive Director of Housing and Sustainable Development to manage the process, including public consultation, finalising the areas affected, and potentially extending the HMO Article 4 Direction. Enforcement action for the immediate HMO Article 4 Direction will be waived.

Merton's Climate Delivery Plan - Year 6 Approved

The Cabinet approved Merton's Climate Delivery Plan for its sixth year, signalling continued commitment to tackling climate change. The plan outlines the council's strategies and actions to reduce carbon emissions and build resilience. Authority was delegated to the Executive Directors for Environment, Civic Pride & Climate and Housing and Sustainable Development, in consultation with the Cabinet Member for Civic Pride and Climate Change, to make minor amendments to the plan.

Funding for Neighbourhood and Community Climate Action Projects

A total of £705,941 was allocated to various projects through the Civic Pride - Investing in Neighbourhoods and Community Climate Action Funds for 2025. This funding comprises £539,941 from the Neighbourhood Community Infrastructure Levy and £166,000 from the Community Climate Action Funding. The allocations were made in accordance with Merton Council's approved criteria, supporting 21 bids received. The award of funding is subject to specific conditions outlined in Appendix B and due diligence checks under the Subsidy Control Act 2022.

Proposal for a Merton Half Marathon Approved

The Cabinet approved a proposal to partner with the Great Run Company to host a half marathon in Merton, with the inaugural event planned for Spring 2027. A sum of £310,000 from council reserves has been set aside to cover potential council contributions during the first two years of operation. The final decision on proceeding with the event will be delegated to the Executive Director, in consultation with the Cabinet Members for Finance and Sport, based on sales data and financial assessments at agreed review points.

Microsoft Enterprise Agreement Procurement

The Cabinet agreed to the procurement process for a Microsoft Enterprise Agreement using the Crown Commercial Services (CCS) TePAS framework agreement. The contract will be awarded to the winning supplier following the outcome of the CCS Aggregation process.

Fees and Charges Review Noted

The Cabinet noted the review of fees and charges for 2026/27 and agreed to the proposed changes related to executive functions, as outlined in Appendices 1 and 2. Fees and charges not falling under executive functions will be handled by Full Council or delegated committees and officers. This item followed a call-in in December 2025, with the Overview and Scrutiny Panel recommending the report return to Cabinet for noting the published overarching Equalities Impact Assessment (EIA).

Budget 2026/27 and Medium-Term Financial Strategy Approved

The Cabinet made significant recommendations regarding the council's budget for 2026/27 and its Medium-Term Financial Strategy (MTFS) for 2026-30. Key decisions include:

• Council Tax Freeze: A freeze in the general council tax level for 2026/27.
• Adult Social Care Precept Increase: A proposed 2% increase in the Adult Social Care precept to support care for older and vulnerable residents. This will result in a Band D Council Tax of £1,630.01.
• Budget and MTFS Approval: Approval of the Budget and Medium-Term Financial Strategy 2026-30, including the General Fund Budget and Council Tax Strategy for 2026/27, along with associated Equality Impact Assessments (EIAs).
• Capital Investment Programme and Treasury Management: Approval of the Capital Investment Programme, the Treasury Management Strategy, Prudential Indicators, and the Capital Strategy.
• Flexible Use of Capital Receipts: Approval of the Council's Strategy for the Flexible Use of Capital Receipts 2025/30.
• Savings Proposals: A request for officers to review savings proposals and bring them forward for earlier implementation where possible.
• Risk Management Strategy: Consideration and approval of the Risk Management Strategy.

The Cabinet also noted that the GLA precept would be agreed by the London Assembly on 25 February 2025, with a provisional figure incorporated into the MTFS. Amendments to figures and wording in the report may occur before the report is presented to the Council on 25 February 2026. A commissioned report from Peopletoo, titled Merton Council Financial Healthcheck Review of Value for Money & Critical Success Factors, was also noted.

Period 9 Financial Monitoring Report Noted

The Cabinet noted the financial reporting data for period 9 (December), which indicated a forecast revenue overspend of £0.785m when corporate funding items were included. This represented an improvement of £1.141m since period 8. The Cabinet also noted the contents of appendices 3 to 3c and approved proposed adjustments to the capital programme detailed in Appendix 3.